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Seattle, WA – Microsoft is set to invest approximately $80 billion into artificial intelligence (AI) initiatives during its fiscal year 2025, a move that underscores the company’s commitment to leading in the AI revolution. Brad Smith, Microsoft’s president, made the announcement on Friday, framing AI as a transformative force akin to the advent of electricity.
AI as the New Electricity
“In many ways, artificial intelligence is the electricity of our age,” Smith wrote in a blog post. “The next four years can build a foundation for America’s economic success for the next quarter century.”
Smith emphasized that the United States must lead globally in AI innovation and adoption, warning that the country risks falling behind China if it does not act swiftly and strategically.
Calls for National AI Strategy
Smith urged President-elect Donald Trump and Congress to prioritize AI by increasing federal funding for research at universities and the National Science Foundation. He also recommended developing a robust international strategy to promote U.S.-based AI technologies as trustworthy and superior to those offered by competitors, particularly China.
“The US needs a smart international strategy to rapidly support American AI around the world,” Smith stated, pointing out China’s aggressive push to dominate global AI markets by subsidizing computer chips and building AI datacenters in developing nations.
AI Rivalry Between the U.S. and China
Smith highlighted the urgency of the “race between the US and China for international influence,” where first-mover advantages could dictate long-term dominance in global AI standards.
“Given the nature of technology markets and their potential network effects, this race…likely will be won by the fastest first mover,” he wrote.
China’s subsidized AI infrastructure offerings are gaining traction in developing countries, Smith warned, as nations adopting China’s AI platforms are likely to remain reliant on them.
Microsoft’s $80 Billion AI Investment
Microsoft’s substantial AI investment will focus on:
- Expanding AI datacenter infrastructure globally.
- Training advanced AI models.
- Developing and deploying cloud-based AI applications.
Smith emphasized the scale of Microsoft’s commitment, which aligns with investments from other tech giants like Amazon, Google, and OpenAI, who are similarly pouring billions into AI development despite uncertain near-term profitability.
Collaborative Vision for AI Leadership
Smith also called for collaboration between government and industry to bolster AI innovation in the U.S.
“The United States is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally,” he said.
Microsoft’s fiscal year 2025 will end in June, and the company aims to cement its position as a leader in AI innovation by then. As competitors and nations ramp up their own AI efforts, the stakes for establishing dominance in the field have never been higher.
This significant investment highlights not only Microsoft’s ambitions but also the broader importance of AI as a critical driver of future economic and technological landscapes.